Bitcoin
Is Now the Time to Buy Bitcoin Stocks as Institutional Adoption Rises?
Wall Street investors may consider now an opportune time to buy Bitcoin stocks, as a bullish breakout could drive further growth.
As of Tuesday, the crypto market continues to show resilience and growth, leading to positive sentiment for Bitcoin (Bitcoin) actions. This crypto surge is fueled by institutional adoption and upcoming legislative developments. Bitcoin made significant gains on Monday afternoon, reaching over $71,000 at the end of trading, leaving behind the price stagnation of recent days. This marks the first time Bitcoin has surpassed the $70,000 mark since the beginning of April.
Other cryptocurrencies also saw strong intraday gains. Ethereum (ETH) rose 11.5% to $3.4300, and Solana (SUN) rose 8.2%. Since then, Ethereum has soared to over $3,700.
The rally boosted cryptocurrency-related stocks on Monday, with Marathon Digital (MARA) rising 15%, Bit Digital (BTBT) 22% and Coinbase (COIN) 8.5% at the close of Monday’s session. Bitcoin mining stocks like Marathon Digital (MARA), Riot Platforms (RIOT), CleanSpark (CLSK), and Cipher Mining (CIFR) will be in the spotlight as BTC demand and price increase.
Institutional adoption and ETF holdings
The introduction of the location Bitcoin ETFs in January accelerated institutional adoption of crypto. According to recent 13-F filings563 professional investment firms reported holding $3.5 billion worth of Bitcoin ETFs.
Notable names in this lawsuit include hedge funds like Citadel, Millennium, and Point72. Morgan Stanley, a traditional asset manager, disclosed a $270 million investment in GBTC. Additionally, the State of Wisconsin Investment Board (SWIB) was the first US pension fund to invest in Bitcoin ETFs, setting a precedent for other state pensions.
Nearly $1 Billion Was Invested in Spot Bitcoin ETFs Last Week
O 13-F Filings also revealed an influx of capital into spot Bitcoin ETFs, totaling $948.3 million in net inflows last week. This increase reversed almost US$500 million in net outflows of these products in the previous eight weeks, raising the accumulated net flows for the year to more than US$12 billion. This renewed interest from investors highlights the growing acceptance of BTC-related financial products in traditional investment portfolios.
Bullish sentiment for Bitcoin stocks
Given this influx of adoption and a growing number of BTC ETF investments, sentiment towards the crypto remains bullish. Bitcoin Mining Stocks Faced Pressure post-halving, but an upward breakout in the Bitcoin price could mean a positive turnaround – mining companies are looking to increase investment in mining machines and rely on the rising Bitcoin price to sustain growth. Companies like Crypto MiningMarathon Digital and CleanSpark reported strong quarters, indicating the potential for a further rally if Bitcoin remains above $70,000.
HC Wainwright & Co gave notable stocks like Marathon Digital (MARA), CleanSpark (CLSK), Core Scientific (CORZ) and Riot Platforms (RIOT) all “buy” ratings, reflecting bullish sentiment about the shares of Bitcoin.
HC Wainwright & Co stated in a research note that Bitcoin’s volatility and sensitivity to CPI data “proves to us that it still remains a risky asset and that investors should expect significant volatility surrounding future CPI releases.” , and note that inflation still remains well above the Fed’s 2% target, reaching +3.4% year-over-year in April.”